International Market Analysis Report: Lime vs. Pakistan and Vietnam

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This report analyzes international trade, specifically focusing on a market analysis for Neutron Holdings, Inc., a transportation rental company operating under the name Lime. The report begins with an introduction to the company and its product offerings, which include bicycle, scooter, and carsharing systems. It then provides background information on Vietnam and Pakistan, including their populations, key economic sectors, and international relations. A comparative analysis is presented in a table, highlighting key differences between the two countries in terms of GDP, inflation rates, education levels, labor force skills, current interest rates, currency exchange rates, and unemployment rates. Based on this analysis, the report recommends that Lime expand its venture in Pakistan due to its higher GDP, potential target customers, and infrastructure development. The report also considers factors like unemployment rates and inflation to justify the recommendations. The conclusion reiterates the recommendation for Pakistan, emphasizing the potential for business expansion and the importance of considering various economic factors for informed decision-making.
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Running head: INTERNATIONAL TRADE
INTERNATIONAL TRADE
Name of the student
Name of the university
Author note
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1INTERNATIONAL TRADE
Table of Contents
1. Introduction to the company........................................................................................................2
2. Product offering of the organization............................................................................................2
3. Brief background to Vietnam and Pakistan.................................................................................3
3.1 Vietnam..................................................................................................................................3
3.2 Pakistan..................................................................................................................................3
4. Comparative analysis of the two countries in a table..................................................................4
5. Recommendation to the Board of Directors................................................................................4
6. Conclusion...................................................................................................................................5
References........................................................................................................................................6
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2INTERNATIONAL TRADE
1. Introduction to the company
The concerned organization, Neutron Holdings, Inc, has undertaken a transportation-
rental company under the name Lime. The concerned organization was established in the year
2017. The different measures that were undertaken by the organization has helped the same in
maintaining the efficiency of the operations in accordance to the needs of the customers. The
concerned organization is headquartered in San Francisco and has expanded in the different parts
of the world (Li.me 2019). The concerned organization provides bicycle, scooter and car-
sharing systems, which has helped the same in attracting most of its customers. The different
developments that are made by the concerned organization assisted in upholding the expansion
and sustenance of the same in the markets.
2. Product offering of the organization
The concerned organization aims at providing the customers with the benefit of sharing
dockless vehicles that are unlocked through a mobile application. The vehicles have an inbuilt
GPS tracking system which will help the organization in adhering to the safety and security of
the customers (Li.me 2019). The rental services are aimed at providing the customers with an
emergency vehicle, which is both safe and secure. On the other hand, the innovativeness of the
idea and the brand image of the organization have helped the same in making an expansion in the
different markets (Li.me 2019). The charges that are applied by the concerned organization on
the 30 minutes unpowered bicycles is $1 or 1€. On the other hand, the electric
bicycles and scooters cost $1 for being unlocked and 15 cents per minute in US (Li.me 2019).
The affordability of the cost has helped the concerned organization in attracting the attention of
most of its target customers. The different developments that are made by the organization are
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3INTERNATIONAL TRADE
dependent on the unique service proposition and the lower price of the offerings, which helped
the same in attracting the attention of most of its customers resulting to success in the markets.
3. Brief background to Vietnam and Pakistan
3.1 Vietnam
Vietnam is the easternmost country on the Indochina Peninsula and is considered to be
the 15th most populated countries of the world. The national population was estimated to be 94.6
million in the year 2016 (Phan 2014). The nation is bordered by China, Laos and Cambodia,
Thailand and Philippines. The nation is also divided into 58 provinces and the foreign relations
of the organization were mostly noticed with China. The major sectors that contributed to the
GDP of the nation was Agriculture, technological innovations and the tourism. It has been noted
that tourism has contributed to the GDP of the nation by more than 7.5%. It has helped the nation
in making progress (Pham and Riedel 2012). On the other hand, the growth of the supportive
industries in Vietnam also helped the same in supporting the growth of the different industries.
3.2 Pakistan
Pakistan is a South Asian country and is the world’s sixth most populated nation.
Pakistan is noted as the world’s 33rd largest nation with 881,913 square kilometers sharing 1,046-
kilometre coastline along the Arabian Sea and the Gulf of Oman (Ihsan and Anjum 2013).
Pakistan’s estimated nominal GDP was US$271 billion, which was computed in the year 2016
(Razi et al. 2012). However, the tensions in the macro- environmental levels affected the
economic growth of the nation drastically. The nation is counted as one of the potential
developing nations in the world and acts as a mediator for assimilating the Islamic nations in the
South East Asian region (Ahmad and Bashir 2013).
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4. Comparative analysis of the two countries in a table
Point of distinction Vietnam Pakistan
Gross Domestic Product (GDP)
(Computed in the first quarter of
2019)
US$ 255Billion US$ 315 Billion (Ahmad and
Bashir 2013)
Inflation rate 4.67 (Phan 2014) 3.93
Education levels and the labour
force skills available
Low and high skilled (Blue
collared)
High skilled (White collar )
Current interest rates 4.80% (Bhattacharya 2014) 10.25% (Razi et al. 2012)
Current value of the local
currency against the United
States (US) dollar
$ 0.02 USD = ₫ 500 VND
(Nguyen 2015)
1000 PKR = US$ 7.07084 (Ihsan
and Anjum 2013)
Unemployment rate 2.20% 5.90%
Average income per person per
year ₫1776 VND (Pham and Riedel
2012)
PKR 2,14,3
5. Recommendation to the Board of Directors
The recommended actions that might be undertaken by the board of directors of the
organization are:
The concerned organization must take steps to expand their venture in Pakistan as the
higher GDP of the same will help the concerned organization in locating potential target
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5INTERNATIONAL TRADE
customers. On the other hand, the different infrastructural and technological
developments that are made by the nation will support the growth of the business.
The higher rate of unemployment in Pakistan will support the organizational objective of
creating job positions while undertaking recruitment of the skilled workforce in Pakistan .
It will help the concerned organization in enhancing the rate of innovativeness of the
processes.
The higher inflation rate in Vietnam might affect the capabilities of the target audience in
utilizing the service offerings of the transportation rental business. Therefore, the
concerned organization must take steps to expand in the Pakistan n markets with lower
inflation and enhanced potentiality of the customers. It will be helping the concerned
organization in maintaining the sustenance of the same.
6. Conclusion
Therefore, from the above assessment it might be stated that the concerned organization
might take steps to develop their venture in Pakistan rather than in Vietnam as the greater
affordability and potentials of the Pakistan n customers will be supporting the unprecedented
expansion of the same in the different regions. On the other hand, the evaluation of diverse
range of factors and comparison between the two economies helped in identifying the most
feasible market for development of the business.
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6INTERNATIONAL TRADE
References
Ahmad, F. and Bashir, T., 2013. Explanatory power of macroeconomic variables as determinants
of non-performing loans: Evidence form Pakistan. World Applied Sciences Journal, 22(2),
pp.243-255.
Bhattacharya, R., 2014. Inflation dynamics and monetary policy transmission in Vietnam and
emerging Asia. Journal of Asian Economics, 34, pp.16-26.
Ihsan, I. and Anjum, S., 2013. Impact of money supply (M2) on GDP of Pakistan. Global
Journal of Management and Business Research.
Li.me., 2019. Lime | Electric Scooter Rentals, Micro Mobility Made Simple. [online] Li.me.
Available at: https://www.li.me/ [Accessed 16 Apr. 2019].
Nguyen, B., 2015. Effects of fiscal deficit and money M2 supply on inflation: Evidence from
selected economies of Asia. Journal of Economics, Finance and Administrative Science, 20,
pp.49-53.
Pham, T.T.T. and Riedel, J., 2012. On the conduct of monetary policy in Vietnam. Asian
Pacific
Economic Literature, 26(1), pp.34-45.
Phan, T.A., 2014. The Determinants of Inflation in Vietnam: VAR and SVAR
Approaches. Crawford School Research Paper, (14-04).
Razi, A., Shafiq, A., Ali, S.A. and Khan, H., 2012. Determinants of exchange rate and its impact
on Pakistani economy. Global Journal of Management and Business Research, 12(16).
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